The Marietta journal. [volume] (Marietta, Ga.) 1866-1909, 1887-08-04
NORTHCUTT ON INTEREST.
A Senator's Speech Upon Topic of Great
Interest.

Il am not one OF those who think
any interest for the use of money is
illegal | believe that reasonable
rate is right and proper, just to the
lender, and should be honestly paid
by the borrower. | do not sympa-
thize with the communistic prin-
ciples and sentiments of the day.
those that tend to the subversion of
all existing institutions, most espe-
cially the sacred one OF property.
This bill is no new venture similar
measures were enacted by our faith
ers $50 years ago. AS far back as
1889 law was enacted making per
cent the maximum rate; in 1915, 7
per cent was made the rate, and so
continued until 1879, when the pres
ent law was made.
Thirty-fve states have in force to-
day usury laws, in which the average
rate is IS per cent In twenty states
the conventional rate is 10 per cent.
In twenty-one states 8 per cent is
the maximum, beyond which no one
can legally go; in ten states 6 per
cent is the maximum. In New
York, if over 6 per cent, the whole
contract is null and void, and usury
is made crime From the t0unda-
ton of the government, states have
prescribed the rates of interest, and
have endeavored to protect the cur
rency of the country from deprecia-
ton.
"All over Georgia, mortgage deeds
are being created, and the rates of
interest they bear are resulting, and
will continue to result, in the ruin
of the borrower, the loss of his home,
and the breaking up of his family
Sometimes the rates reserved is from
sixteen to twenty per cent. In a
case tried before Judge Speer, at
Macon, it was shown that forty-two
per cent was reserved. These things
are hanging over the state like a
black cloud, and we should, if posi-
bic, avert the storm that is coming.
1t has been the policy of all civilized
governments to encourage citizens
in the ownership of homes, and the
enjoyment Of their lands. The old
home has great influence upon the
heart, however humble it may be.
Every foot of ground about it is con-
secrated, and every room in the house
full OF hallowed memories. Let us
be careful and vigilant. Let us take
steps to prevent our people from be-
ing ruined. Let US say to the lend
ers that if they want to gain posses
sion of our land, they must do it by
legal and honest means; and let us
tell them that if they desire to re-
duce our people to a state Of slavery,
it shall be done legally.
''The ways and means adopted by
these lenders are mere devices to
evade the law. In late case be-
fore the courts, all these things were
shown in there true light. The Judge
held that the contract was a question
for the jury TO decide. Now let us
have an unmistakable law upon the
subject to govern the Juries on the
matters.
"What excuse has the lender for
these enormous charges? Has he
the excuse that the merchant, fire.
quently makes that the risk is great
No. lie never loans more than one
third on the value Of the land. In
case Of the borrowers death there is
no way to get a years support fo-
the widow and children. Everything
is subservient to the lenders mort
gage; all give way before his grasp
ing avarice. Ii may be said that if
the measure is passed, it will pre-
vent farmers from getting money.
Better that it did than that they
should obtain it on such exorbitant
terms. Let them sell one-half their
land outright, rather than mortgage
the whole, and in a few years see it
all leave their possession. This same
argument was used against creating
the railroad commission, that it would
ruin the roads and stop all invest
ments in that line. Did this occur
On the contrary, are not the rail
roads of the state more prosperous
than ever before Are not more be-
ing chartered than ever before The
money invested in these land loans
will seek other channels. 1t will be
invested in our factories and our
railroads il will remain in the state,
but it would be better for it to leave
the state forever than for the land to
pass from the possession of Georgians
into the hands of foreigners and
aliens who have no other interest in
the state beyond a merely pecuniary
one"
The bill passed unanimously.
If a strip of narrow plank was nail
ed ON barbed wire fences, at the top,
from post to post, SO that horses
a n a